Hella Establishes New Trading Subsidiary In South Africa

UITENHAGE/LIPPSTADT, December 4, 2008: The automotive supplier Hella KGaA Hueck & Co., Lippstadt, Germany, is creating new structures in South Africa to successfully grow its aftermarket and special original equipment (SOE) business segments. The new trading company, Hella Automotive South Africa (Pty) Ltd., which is based in Uitenhage, will constitute the hub for future growth in South African markets. As a wholly owned subsidiary, operations started on December 1, 2008.

Hella Automotive South Africa (Pty) Ltd. will distribute a wide range of locally manufactured and imported Hella products in the segments of lighting, electrics and electronics, to the independent automotive aftermarket and SOE customers. The new company has exclusive rights to sell locally manufactured aftermarket and SOE products sourced from Hella (South Africa) (Pty) Ltd., an independent manufacturing company in Uitenhage. Hella (South Africa) (Pty) Ltd. was originally owned by the Hella Group prior to becoming a wholly owned subsidiary of the Metair Group in 1993.

The establishment of the new Hella subsidiary and its aftermarket infrastructure will not affect the original equipment supply of automotive parts manufactured by the existing Hella (South Africa) (Pty) Ltd.. However, the direct market involvement of the Hella Group now requires a name change of Hella (South Africa) (Pty) Ltd. into Lumotech (Pty) Ltd., which will become effective early next year.

Michael Hilmerich, Vice President Sales Overseas Aftermarket & Special OE at Hella KGaA Hueck & Co., said the move reflects the accelerating global growth initiatives of the Hella Aftermarket and Special OE business. "The markets in South Africa and its neighbouring countries are playing an important role in our future business creation. With the implementation of a new logistics set-up, delivery service and product availability will be considerable improved. Moreover, in future our customers will benefit from more effective sales support, that includes competent technical and commercial services as well as modern, fast information and ordering systems."

According to Wolfgang Ropertz, managing director of the Hella (South Africa) (Pty) Ltd. / Lumotech (Pty) Ltd. manufacturing plant in Uitenhage, the new Hella structure provides a clearer market positioning. "The current Hella South Africa plant in Uitenhage has historically manufactured Hella products under contract from Hella KGaA Hueck & Co., Germany. The plant, to be renamed Lumotech (Pty) Ltd., will continue to operate independently from Hella," he said. "We will focus our operational and production activities to answer the needs of our original equipment customers for series as well as spare parts in South Africa, while also supplying products to Hella Automotive South Africa for distribution to the automotive aftermarket"

Both parties look forward to a period of mutual business growth.